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The semiconductor industry is witnessing rapid advancements in packaging technologies, particularly in the realm of advanced packaging and hybrid bonding. Advanced packaging involves innovative methods to interconnect chips, leading to improved electrical performance, reduced power consumption, and increased functionality. Hybrid bonding, a key aspect of advanced packaging, offers a robust solution for achieving high density interconnections and superior mechanical stability. Overlay metrology measurements play a crucial role in the success of advanced packaging fabrication. Accurate overlay measurements ensure precise alignment of various process steps during packaging fabrication, which is essential for maintaining the integrity and functionality of the final product. This paper delves into the importance of overlay metrology in advanced packaging, discussing the methodologies and technologies employed to achieve high accuracy and robustness in measurements. Furthermore, the paper explores the challenges associated with wafer-to-wafer and die-to-wafer overlay metrology. These challenges include achieving consistent alignment across multiple process steps, managing variations in die thickness, and addressing the complexities of multi-die structures. The introduction to wafer-to-wafer and die-to-wafer overlay metrology provides insights into the current state of the art, the technological hurdles faced, and the ongoing efforts to overcome these obstacles. In conclusion, this paper will summarize the critical aspects of overlay metrology in advanced packaging, offering a comprehensive overview of the techniques, importance, and challenges involved.